Search

Editors

‘Pharma Bro’ Martin Shkreli Sentenced to 7 Years in Jail for Fraud

Martin Shkreli, the notorious “Pharma Bro” vilified for jacking up the price of a drug in a high profile price gouging scandal, was sentenced to seven years in prison today for defrauding investors in two failed hedge funds.

Shkreli broke down in tears as he made a final plea and cried to U.S. District Judge Kiyo Matsumoto, admitting he’d made many mistakes.

“I want the people who came here today to support me to understand one thing, the only person to blame for me being here today is me,” he said. “I took down Martin Shkreli.”

He also apologized to the investors he defrauded, saying: “I am terribly sorry I lost your trust. You deserve far better.”

Reporters in the courtroom broadcast the news of Shkreli’s tearful plea to the world.

But Judge Matsumoto remained firm, insisting that the punishment had nothing to do with his online behavior––Shkreli achieved notoriety after trolling many of his critics online––let alone raising the cost of Daraprim, an antiparasitic drug used to treat AIDS patients.

“This case is not about Mr. Shkreli’s self-cultivated public persona … nor his controversial statements about politics or culture,” the judge said.

Earlier this week, Judge Matsumoto ruled that Shkreli would have to forfeit more than $7.3 million in a brokerage account and personal assets, including a one-of-a-kind Wu Tang Clan album he’d purchased for more than $2 million. The judge clarified that authorities would not seize Shkreli’s property until he had the opportunity to appeal.

The punishment was a little less than half of what prosecutors had initially recommended: Shkreli faced a maximum of 45 years in prison for his crimes. Shkreli was also fined $75,000 and received credits for the six months he’s spent in federal prison thus far.

Can we finally get to hear it?

Two fabled albums owned by Martin Shkreli could be sold at auction, after the shamed pharmaceuticals boss was jailed for fraud.

Shkreli, who was sentenced to seven years in prison last week, is the only owner of a Wu-Tang Clan album, and claims that he also has a Lil Wayne record in his possession.

The 34-year-old entrepreneur paid $2 million in 2015 for Once Upon a Time in Shaolin, the 31-track double album that the Wu-Tang Clan spent six years creating

But it now seems that both records could go under the hammer after it was announced that Shkreli owes crippling debts of more than $7.3 million.

Prosecutors have also issued a forfeiture order that requires Shkreli to confirm if he’s still in possession of the album.

The order states that “shall not, directly or indirectly, transfer, assign, license, waste, pledge, encumber, hypothecate, distribute, dissipate, dilute or remove” the record from the court’s jurisdiction.

Record executive Jeff Gold told the Associated Press: “Martin is not viewed by the general public in a necessarily positive way, so his association with [the albums] I don’t think is a positive.”

“These [albums] are problematic to sell”, he added.

“If there are cars or boats or brokerage accounts, all of that stuff is going to be a lot simpler to quantify. There are a lot of questions around these albums and what you can and can’t do with them.